Coastal Capital - Mortgage Banker

No mainstream story, but I have received private confirmation of the discussion found here. No word on what fraction of their portfolio was subprime, nor how large their originations or holdings were.

About the company:

Coastal Capital is a privately owned mortgage banker that was established in June of 1988. There is a diverse family of companies under the CCAP umbrella such as subservicing, collections and our mortgage banking division. We have over 600 employees and are licensed in 43 states and have grown via referrals only through our network of Account Managers and Brokers.

Here is some more background info sent to me by an industry source:

[Coastal] used to be a large East Coast lender, but recently they were only closing around 12 million a month. The owner sold off all his holdings over the last few months. He was indicted earlier this week for his role in the Duke Cunningham scandal. They started going downhill last year when he closed the subprime unit, sold off his collection companies, and his servicing company. At it's height in 2003 Coastal was closing 75 million a month.

Here is a story on the ties between coastal and Duke Cunningham:

A common thread in the Cunningham case is a mortgage company, Coastal Capital Corp.

Virginia's Bureau of Financial Institutions lists John T. Michael as the chief executive officer for the Greenville, N.Y.-based company. According to news reports, Michael is the nephew of Kontogiannis' wife. In an earlier interview, Kontogiannis told the North County Times that his daughter is also a principal in the company. A source close to the investigation has confirmed that Michael is alleged to be co-conspirator No. 4.

The Washington Post also has the indictment of Coastal's John Thomas Michael.